Do banks want to profit from foreclosures?

[Joe Splitrock]

I am looking at investing in a bank owned property. It was last sold two years ago for around $150K and they were trying to sell it for $185K. The house is beat up and the appliances are all gone including the dishwasher and range hood. Clearly the house is not in prime condition like it probably was two years ago when it sold for $150K. I am assuming the bank loan was less than $150K. The agent told me the bank just wanted to get out the money they had in it. I questioned how they could have more than $150K into it and he just said market appreciation. Our market may have gone up around 8% in two years, but with the condition and missing appliances, I cannot get to their listing number. Is it is common for banks to try to profit from foreclosures? If I submit an offer is there anything I can do to increase the likelihood they will accept my offer? I am thinking of sending a cover letter detailing what I think the value is in current condition. Would that help the bank rationalize my offer as fair? If my offer is higher than what they are owed, are they likely to take it or are banks using foreclosures as an income stream?